The top two financial institutions in Canada bucked a troubling trend when each released its second-quarter 2019 results this week. Analysts expected weak numbers across the board for Canada’s top banks, so it was encouraging to see an uptick.
Royal Bank (TSX:RY)(NYSE:RY) is the largest financial institution in Canada. Shares were up 1.25% at the bottom of the noon hour on May 24. The bank released its second quarter results after trading closed on May 23.
Net income rose 6% year-over-year to $3.23 billion and diluted earnings per share posted 7% growth to $2.20. As expected, Royal Bank and its peers saw a boost in the Capital Markets segment after a rough first quarter. This quarter Capital Markets posted the biggest rate of growth as net income rose 17% from the prior year.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is the second-largest bank in Canada. Its stock was up 0.79% in early afternoon trading on May 24. Shares have climbed 11.2% in 2019 so far.
It released its second quarter 2019 results on the same day as Royal Bank. Adjusted net income climbed to $3.26 billion or $1.75 per share compared to $3.06 billion or $1.62 per share in Q2 2018. Unsurprisingly, TD’s U.S. segment was a significant source of strength.
Net income in U.S. Retail rose 29% year-over-year to $1.26 billion.
This is a promising batch of earnings for both banks as investors have grown anxious in the face of a broader slowdown in the Canadian economy.
